New Report Puts COVID Damage Into Perspective, Amplifies Message for Relief

February 11, 2021
New Reports Puts COVID Damage Into Perspective, Amplify Message for Relief

It’s no secret that the U.S. hospitality and travel industries have taken a major hit since COVID-19 took hold. But a new report from the U.S. Department of Labor confirms that they took the lion’s share of damage during the past year.

The latest DOL jobs report has found that 39% of the American jobs last since February 2020 came from the leisure and hospitality sectors—triple the number of the next most devastated industry (government, which saw its workforce drop by 13%). 

There is a current 16% unemployment rate among leisure and hospitality companies, nearly triple the overall U.S. employment rate of 6%.

“The math is pretty easy: the U.S. economy won’t get back on track until the leisure and hospitality sector is back on track, and that’s going to take aggressive policy actions,” said U.S. Travel Association President and CEO Roger Dow in a statement.

Days before the report’s release, the U.S. Senate passed a bipartisan amendment attempting to speed the industries’ recovery. Proposed by U.S. Senator Catherine Cortez Masto (D-Nev.) and Kevin Cramer (R-N.D.), the legislation prioritizes the hard-hit hospitality sector as Congress works through President Biden’s proposed $1.9 trillion stimulus package.

The most practical measure of the amendment is that it establishes a deficit-neutral reserve fund to support hospitality, conventions, trade shows, entertainment, tourism and travel and their workers. 

“Our communities cannot afford to see these industries decimated, and I’m glad to have passed this bipartisan amendment to expand support for our struggling hospitality sector and provide relief for the workers in the industries hardest hit by this pandemic,” said Masto in a statement.

While a handful of events are going on as scheduled, the pandemic has pushed a lot of  hotels and event companies to the brink. Many are hoping to stay afloat long enough for vaccine distributions to not only inoculate the general public from the virus, but also the related fear of travel. 

Global Perspective

As the country and the world approach the one-year anniversary of when the pandemic ushered in travel restrictions, social distancing measures and quarantining, the entire meetings and events industry is taking stock of the damage.

UFI Covid Damage report

UFI, The Global Association of the Exhibition Industry, recently released a report with similarly grim details to the Department of Labor statistics. Research from the Paris-based association found that the global exhibition industry has shrunk by 68% compared to 2019, affecting 2.4 million jobs.

“COVID-19 has had a significant impact on the exhibition industry, as well as those sectors who benefit from face-to-face events,” said Kai Hattendorf, UFI managing director and CEO. “The impact has not just been felt by exhibitors, who showcase their products and develop their sales, but also by those involved in tourism-related activities.” 

It should be noted that UFI sees light at the end of the tunnel, predicting revenues will double in 2021 compared to last year. 

Nevertheless, industry lobbyists like USTA are not letting up on their efforts. Among the association’s requests to Congress and President Biden are:

  • Extend and enhance the Paycheck Protection Program to provide a third draw for businesses that continue to face difficulties due to COVID-19.
  • Provide grants for hard-hit sectors within the travel industry.
  • Provide $2.25 billion in EDA grants to promote safe and healthy travel practices.
  • Provide $17 billion in additional relief for commercial airports and airport concessionaires.

Waiting on general distribution of vaccines is not an option, Dow said.

“There are still unknowns about when travel will restart in earnest,” he said. “What is fully known is that the pandemic’s effect on travel is continuing to cause devastating economic and employment harm, and the only way to correct that is through aggressive action.”

 

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Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact